London is getting more expensive for most - but Boris doesn't believe in compulsory living wage

19th November 2014

Jonathan explains that wages are falling in London, by 0.7%. The reason may be attributed to a falling in city bonusses for bankers, but also because well paid government jobs are being replaced.

This change comes as the cost of living is rising by 1.3% nationally, and the result is everybody being squeezed. Unfortunately, the situation is worse as the cost of housing is rising steadily and steeply in the London markets.

Since last year, prices have risen 18.8%. For first time buyers, it presents an impossible situation of stagnated wages and rising house prices. Rents are also at a record high.

Figures from the Office of National Statistics show a huge disparity in wages earned across the city - although unsurprisingly residents Chelsea and Kensington earn the most. More surprisingly, Tower Hamlets came in as the second highest-earning borough.

The gender pay gap has narrowed slightly, although the difference is glacial - a drop from 10% average difference to 9%.